Oil edges down as traders cash in on recent profits
During Monday’s Asia trade, crude oil edged lower, because market participants simply took profit right after last week’s impressive rally on signs that the global oversupply might start easing in the nearer future.
In New York, June delivery sweet light crude futures were worth$43.03 per barrel, or a 1.6% slide. Then, June Brent crude futures slumped 1.4%, trading at $44.49 a barrel.
Well, crude prices are currently down on profit taking and without any breaking news they will most likely wave in the nearer term.
Even in the absence of an output freeze deal between the OPEC countries and Russia, last week crude prices managed to surge 5%, powered by hopes that slumping output in non-OPEC countries would moderate the evident surplus in the energy market.
The International Energy Agency actually expects waning production from China, Columbia, Russia, Mexico and the USA aimed at resetting the overall supply-and-demand balance next year. So, a decent pick-up in crude oil prices is expected to take place in 2018.